Transparency vs. Taskforces: The Debate Over New Zealand’s Illicit Tobacco Market

Health experts warn that data on New Zealand's illicit tobacco market may be overblown by industry-funded reports, despite calls for a government crackdown.

By: AXL Media

Published: Apr 23, 2026, 6:10 AM EDT

Source: RNZ Pacific

The Illicit Market: Real Issue or Industry Narrative?

A recent report by Retail NZ estimated that over 27% of tobacco smoked in 2024 was illicit. This figure has become a lightning rod for controversy, as it was originally sourced from a 2025 study prepared exclusively for Imperial Tobacco and British American Tobacco.

While Retail NZ maintains their report was written independently, health advocates like Ben Youdan, Director of Action for Smokefree Aotearoa NZ, urge caution. "The tobacco industry has a long history of exploiting different voices in their own commercial interests," Youdan stated. He argued that while small retailers face genuine concerns, the industry often "stokes the fire" to undermine smoke-free policies.

Brazen Sales in Auckland

Despite the debate over statistics, the physical presence of black-market tobacco is an "open secret" in major cities.

The Price Gap: RNZ investigations found shops in East Auckland selling cigarettes for as low as $13 a packet—roughly a third of the legal retail price.